Agenda item

To present the report of the Head of Housing Services.

The report of the Head of Housing Services incorporating the Housing Revenue Account Business Plan 2022-2052 was presented for the Committee’s consideration and comment.

Councillor Alun Mummery, Portfolio Member for Housing and Supporting Communities presented the report and Plan the aim of which is to plan ahead to ensure that a financially viable plan is in place for the Council’s housing stock.

The Head of Housing Services reported that the Plan is in the format the Council has used previously for its submission to Welsh Government which has been recognised for its level of detail. The Plan remains in draft form and further amendments and editing will be carried out prior to its final submission for approval by the Executive. The report and Business Plan have been prepared in conjunction with Officers from the Finance Service and the Plan forms the primary tool for financial planning of the delivery and management of the Council’s housing stock. Specifically, the Business Plan shows how the Council brings all its stock to Welsh Housing Quality Standards; how the Council intends to maintain and exceed WHQS and work towards the decarbonisation of its housing stock and the investment needed to increase the housing stock and the provision of affordable housing. The HRA Business Plan also contributes to all the fundamental themes within the Council’s Corporate Plan. The intention for the future is to refine the Business Plan into a shorter more forward looking document and to produce an annual report on performance and achievements.

In the ensuing discussion, the Committee raised the following points –

·                  Noting that the profile of the Council’s tenants was weighted towards those aged 56 or over with only 10% aged 22 to 35, the Committee  wanted to know how in light of the Council’s emphasis on access to affordable housing, this demographic might be changed. The Head of Housing Services advised that the tenant profile is based on the total number of tenants who occupy the Council’s approximately 3,900 council homes. On average, the Council lets around 260 council houses per annum or 8% of its stock and although the Council’s tenancies include a number of older households with longstanding tenancies, the emphasis with regard to new lettings is towards the younger demographic.

·                  Whether the Council has the capacity and specialist skills to achieve its objective of decarbonising its housing stock by 2030. The Head of Housing Services acknowledged that delivering the decarbonisation agenda will be challenging as other councils and social housing providers will be seeking to deliver the same change and will be competing for the same skills and resources. Additionally, guidance with regard to what is expected of local authorities has not yet been issued. However, the Council will also look to build its own skills and workforce to help it achieve net zero across its housing stock by 2030.

·                  Whether the Business Plan in its projections for housing provision, takes into account the social and demographic changes that have and are likely to occur in future e.g. the increase in single households. The Head of Housing Services confirmed that the Council is developing an increasing number of one and two bedroom units while recognising that there is also a shortage of larger 4/5 bedroom units. The Council seeks to make the best use of stock and to use its stock effectively to ensure that the range of housing need is met; this includes a downsizing incentive scheme to support tenants occupying larger properties into moving to smaller properties based on their current and future needs.

·                  Noting that one of the Council’s objectives is tackling poverty including fuel poverty, the Committee highlighted that tenants occupying council properties served by more expensive and often less efficient heating systems are at a financial disadvantage to those tenants in properties where the heating system is more efficient even though they may be paying the same level of rent based on the property’s size. The Committee queried whether it is now appropriate to be considering varying rents to reflect the heating system installed in a property. The Head of Housing Services in acknowledging the point confirmed that rent setting is determined by the Rent Policy and that rent levels are primarily based on the size of a property. A number of factors are taken into account in determining rent levels although at present a property’s heating system is not one of those factors. He confirmed that there are currently no plans to review the policy.   

·                  In response to a query about acceptable fails the Head of Housing Services clarified that acceptable fails apply to cases where a tenant refuses improvement works to their home and safety is not a concern. The Council will undertake the necessary works in accordance with WHQS expectations when the tenancy ends and the property becomes void.

·                  The Head of Housing Services confirmed that historically the HRA Business Plan content has been met with positive feedback from Welsh Government. The Council although smaller in size compared to the other authorities in Wales that have retained their housing stock, is seen as being in the vanguard in terms of new council housing development and was also an early achiever of the Wales Housing Quality Standards.

Having considered the documentation and the clarifications provided at the meeting[AH1] , the Committee resolved to recommend the Housing Revenue Account Business Plan 2022-52 to the Executive for approval and adoption.